Revolut, a popular financial technology company, has recently announced a temporary halt to its cryptocurrency trading services for its business clients in the United Kingdom. The decision comes in response to projected regulatory modifications set to be implemented in early 2024. This move reflects Revolut’s commitment to adapt its business crypto offerings to meet the new regulatory requirements and enhance customer experience while ensuring greater protection for crypto investors.
According to internal communications obtained by City A.M., Revolut will discontinue the option for U.K. business customers to purchase cryptocurrencies through its platform starting from Jan. 3, 2024. However, these customers will still be able to hold and sell their existing crypto assets. It is worth noting that this change only applies to business clients, and the company’s retail clients will not be affected.
Fulfilling Regulatory Requirements and Protecting Investors
The Financial Conduct Authority (FCA), the regulatory body overseeing the financial industry in the UK, has introduced a series of new rules for the crypto industry. These regulations, set to be enforced on Jan. 8, 2024, aim to enhance investor protection in the rapidly growing crypto market. One notable measure is the introduction of a 24-hour cooling-off period for new crypto investments. Additionally, the FCA prohibits promotional incentives such as “refer a friend” bonuses.
Revolut’s decision to halt cryptocurrency trading for its business clients aligns with the new regulations set forth by the FCA. By taking this proactive approach, the company ensures it has ample time to integrate the necessary technological updates to comply with the new standards. This move exemplifies Revolut’s commitment to compliance and customer protection.
Revolut’s temporary suspension of its crypto activities in the UK mirrors its prior stance in the United States. In response to regulatory ambiguities, the company also temporarily halted its crypto services in the US. This trend among fintech firms reflects the sector’s dedication to adapting to the evolving regulatory landscape surrounding cryptocurrencies.
Revolut’s decision to temporarily halt cryptocurrency trading services for its business clients in the UK is a strategic move to comply with the upcoming regulatory changes. By aligning with the new rules set by the FCA, Revolut demonstrates its commitment to customer protection and providing an improved experience for crypto investors. As the crypto market continues to evolve, this proactive approach by fintech firms underscores the industry’s willingness to adapt to regulatory requirements and prioritize compliance.